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How all this is accounted for depends on the business structure. What is your business structure, sole proprietor, S corp, C corp?
Yes the C corp would deduct that as an expense and you then report as income on Schedule E.
If you were being reimbursed under an accountable plan, provides the greatest tax savings. It is an excellent way to get money out of your closely-held corporation tax-free. The corporation can deduct the amount of the reimbursement and you do not have to report the payment as income.
Yes for 2015 you do.
You may wish to look at establishing an accountable plan for your C corp in the future.
You as employee of the C corp would be reimbursed for home use. The C corp could still deduct but you would not have to report yourself for personal.
You should create a monthly "Employee Expense Report" form for your corporation.
Include a Home Office section in the report. Calculate the "business use percentage" of your home office. List each item of expense paid during the month, such as insurance, oil heat, gas and electric, water and sewer, alarm or security service, garbage disposal, general repairs and maintenance, and rent. Multiply the total of these expenses by the business use percentage to determine the amount to be reimbursed.
Total up all the business expenses listed on the form, including the home office amount, and write a check from the corporation to yourself for this amount.
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You would not if you have an accountable plan. It is a reimbursement to you under the accountable plan and not taxable. Without the plan you use Schedule E as rental income to you.
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